Reflections On Being a Consumer

In a hotel in Osaka, was reading the Daily Yomiuri this morning. In an article about economic recovery the writer reported on the need for American consumers to start…consuming more. Japanese consumers seem to be doing their part. Americans are vexing the stock market, though, with their reticence to spend.

This inspired me to mangle William Carlos Williams:

So much depends on the American consumer / glazed with pain / inside the big box store.

In a recent conversation I was told that indigenous people in South America see consumers caught in a trance of consumption. Like the no-face character in Hayao Miyazaki’s Sen to Chichiro no Kamikakushi (Spirited Away) consumers seem to be insatiable in their appetite for more-or, at least, we are expected to be.

To be what? The engine and fuel of the global economy that’s what. The global economy needs us to buy more, spend more to support so that it can support us. Talk about dysfunctional co-dependence. Not healthy, not sustainable, not particularly attractive. Unless, you like another Miyazaki image from Spirited Away of Chihiro’s gluttonous parent’s changing into swollen, slobbering pigs as they gorge themselves at a counter heaping with food.

Yet, what is the alternative? If we stop buying all this stuff what are Wal-Mart and their myriad of suppliers going to do? You may think I’m being sarcastic-I’m not. So much does depend on our participation in this game of consumption.

Where to begin?

Be aware of the game you’re playing and the effects it is having on you, your family and the world around you. Next, learn the rules. As you’re putting that into practice let’s come together, convene. It’s time to change the rules.

Let’s stop being consumers of stuff and design a game that allows us to become creators of community, builders of value. Let’s build and design for abundance and not the scarcity and separation that comes with our current addiction to consumption.

You bring the bat. I’ve got the ball.

Tags: Daily Yomiuri, Hayao Miyazaki, Osaka, Sen to Chihiro no Kamikakushi, Spirited Away, Wal-Mart, William Carlos Williams

So, How Sustainable is the Wal-Mart Sustainability Index?

To quote Eric Clapton: “It’s in the way that you use it.”

The Wal-Mart sustainability index is measuring whether suppliers are measuring their impact on energy usage, greenhouse gas emissions, waste, resource depletion and the communities in which they operate. Essentially it’s binary with annotation. Are you or aren’t you? If you are, please describe what you are doing.

Wal-Mart is gathering data. The key question is “What for?” Wal-Mart has sustainability targets and standards. They can be found here. They are doing good work. Of particular note are their Sustainability Value Networks. In these networks they’re bringing together “leaders from our company, supplier companies, academia, government, and non-governmental organizations (NGOs)” to work in categories that are core to Wal-Mart’s business. It is a matter of course that they will compare what they are learning from their suppliers with their own progress, most likely incorporating best practices along the way.

So, how will they use it with the suppliers? In the answer to this question lies the answer to the question in the title of this post. And, to really uncover the meaning in that answer requires us to look at the quality of relationships Wal-Mart forms with the suppliers and the quality of relationships the suppliers form with their network.

What do I mean? First, sustainability is something we do together. Fundamentally local and place based, sustainability depends on the quality of our relationships with the world around us. Reducing impact is good, however, relationship-wise this creates a less bad quality of connection. Imagine a spouse telling you that to strengthen your relationship he/she was still going to be bad but, from now on, less bad than before. A start? Yes. A strong foundation for a long-term relationship? No.

Second, sustainability is long term. What are we trying to sustain? Us. How do we do that? By sustaining what sustains us. One way to conceptualize this is a Value Web. Incremental reduction, though currently necessary is not sufficient. We become the slowly-boiled frog. The quality of relationships in our value web slowly erode, the web disintegrates and less bad leads to very, very bad. Simply, we need more good.

So, back to Wal-Mart and their suppliers. Moving forward, the better they are able to build networks of Collaboration that strengthen and enhance the Value Web the more sustainable the Wal-Mart sustainability index becomes. This is where those Sustainability Value Networks could really become value-abling. And, the more coherent their approach, the more effective the networks become at being sustainable. Again, it’s in the way that they use it.

So, now, think about this: For a retail giant like Wal-Mart this is a big hairy audacious undertaking that will touch pretty much all of us for generations to come. This matters. So do we.

So much depends on how we are, what we see and what we do now. As we do as we do we get what we get, becoming what we become. These are interesting times…

Tags: best practices, Coherence, collaboration, Eric Clapton, greenhouse gas emissions, NGO's, Sustainability Index, Sustainability Value Networks, value web, Wal-Mart, waste reduction

The Wal-Mart Sustainability Index: An Overview

Retail giant, Wal-Mart, debuted their Sustainability Index in July. You can download Version 1.0 of the Index here. The latest list of questions on the survey is here.

The survey is divided into four categories: Energy and Climate, Material Efficiency, Natural Resources, People and Community. In essence, it will function as an baseline measurement tool that sorts suppliers by having them demonstrate they are in control of their energy (GHG), waste (solid/water) management and reduction initiatives, material sourcing (production/certification), and community engagement (awareness of impact). At best, it points toward Cooperation. Basically, though, it sets a bar of Compliance for companies that want to do business with Wal-Mart

Though the first category is titled “Energy and Climate” a more appropriate heading would be “Greenhouse Gas Emissions.” The four questions in the category are focused completely through the lens of reporting and reducing greenhouse gas emissions.

The second category, “Material Efficiency”, is dedicated to reduction of solid waste and water use. Linked closely to Wal-Mart’s Packaging Scorecard and their Zero-Waste initiative, it is asking companies to demonstrate how they “reduce waste and enhance quality.”

Category three, “Natural Resources” focuses mainly on sourcing and certification, asking companies to report on origin of materials, purchasing guidelines and 3rd-party certification.

The fourth category is “People and Community” and centers on corporate awareness of and engagement with the communities in which they operate. The first question is telling. It asks if companies know where all of their production and manufacturing facilities are. It’s a start…

Relatively unexceptional in its content it still has very strong potential to be a game-changing move. The reason is simple: as a supplier, to do business with Wal-Mart means doing business their way. Though they are not setting any baseline requirements at the moment, nor are they auditing suppliers (answers to the 15-question survey are received in good faith) they are asking suppliers to complete the survey. To do so means you want (and really need) to have policies and controls in place or risk getting pushed out by companies that do.

Ultimately, this points to the development of an embedded system of and processes for sustainable business. The question suppliers for Wal-Mart have to answer is: “How far do we want to go?” Simple Compliance or Conformity? Cooperation? Collaboration and Coherence? Or, systemic Constellation?

Up next: How sustainable is the Wal-Mart Sustainability Index?

Tags: Climate, Coherence, collaboration, Community, Compliance, Conformity, Constellation, cooperation, Energy, GHG, greenhouse gases, Material Efficiency, Natural Resources, Packaging Scorecard, Sustainability Index, Wal-Mart, waste, zero waste

Moving the Needle: From Less Bad to Abundance

Imagine you’re looking at a gauge. The left half of the gauge has black hash marks with numbers that go from “-10″ to “0″ at the top. The background color on this half is red. The right half of the gauge has numbers that start from “0″ at the top of the gauge and go to “+10″ on the lower right. Let’s say the background color for the right half is green.

The goal is simple. As much as possible, keep the needle in the green. Keep things positive.

In Cradle to Cradle Will McDonough writes that eco-efficiency (aiming for “-2 instead of, say, “-8″) really isn’t an option. It’s like being the frog in the pot of boiling water. The water warms slowly. The frog sits comfortably. By the time the water is too hot, it’s too late to jump out. We’re already half cooked. We’ve boiled ourselves to death slowly.

“Life creates the conditions conducive to life” – Janine Benyus. This is true except for when we’re in the red, the negative half of the gauge. When we’re in the red, we’re burning through resources, devouring capital, depleting our savings. When we’re in the red we’re actually creating conditions that make life hard. We’re degrading the systems that support life, that support us. We’re creating our own Hell, cycles of suffering and destruction. From a mindset of scarcity (use what I can, when I can, to maximize my short-term benefit) we create scarcity.

The other half of the gauge is abundance. When the needle is in the green we, ourselves, businesses, communities, cities, nations and the economies that support us are creating conditions conducive to life. We’re strengthening the systems that support life. Well-being emerges from well-being. We’re creating and sustaining life-generating, life-giving cycles. From a mindset of abundance (use what I can to create long-term prosperity for myself by sustaining and enhancing that which supports and sustains me) we create abundance.

The goal is simple. Keep things positive. Making the changes in the ways we think, see, and act in our lives, communities and our work are difficult, daunting. Sustainability is something we do together. Abundance is something we create together.

Red or green? You make the call.

Tags: abundance, Cradle to cradle, Janine Benyus, life creates the conditions conducive to life, sustainability, Will McDonough

Rethinking the Value of Business

As I talk with prospective members of Abound about their businesses, the business of sustainability and the challenges of being a leader in sustainable business, one of the recurring themes we encounter is that of value.

This theme of value was echoed at the Triple Bottom Line Investment (TBLI) conference I attended in Tokyo. A number of speakers admitted and were confounded by the fact that, from a conventional assessment paradigm, sustainable businesses were often not the best choice for ROI.

A recent conversation with Stephen Aiguier from Green Hammer, a sustainable building company in Oregon, led us to the under-developed notion of relational capital. As it is currently understood relational capital is a subset of the valuation of “intangibles”. This begs the question of what is “tangible?”

Well, assets are tangible but what is their value? The value of assets depends on their valuation-a process of assigning an amount to them. This amount is a shared understanding, an agreement.

Traditionally, a business has been valued by it’s bottom line and top line performance. Cash flow is also a popular indicator. For a publicly traded business this becomes a much more complex process as all sorts of arcane formulae are applied to a business to describe its value to various stakeholders. The business has different values depending on the interests of the stakeholders. Again, we are looking at shared understanding, agreement.

We need to expand our shared understanding and agreement around this concept of value. Legally businesses are people. Actually businesses are complex open systems subtracting and adding value in the markets, communities and environments in which they operate. Both spiders and web, they weave and are nodes in a Value Web. The more resilient the web, the more value it provides. The more skillful the spider, the more resilient the web, the stronger the nodes.

The value of business is its capacity to sustain that which sustains the business-the Value Web. This is relational. In these relationships is the real value of sustainable businesses. Skillful engagement with the Value Web is the pathway to abundance. Abundance is a healthy, highly resilient Value Web.

What is the value of your business?

Tags: Abound, abundance, asset valuation, cash flow, complex open systems, Green Hammer, Oregon, relational capital, ROI, sustainability, TBLI, Tokyo, triple bottom line, value web

What Do CEO’s, Government, the General Public and Girls’ Softball Have in Common?

Check out this article at the Wall Street Journal. I’ve been hearing this a lot lately. Company heads are waiting for governments to give them clear signals on where they should be placing their R&D, development and marketing bets. In essence, they’re asking for regulators and policy makers to tell them the future. It’s a tall order

Still, that is exactly what regulators and policy makers need to be doing. Yet, signals remain mixed. The reason seems to be that our government leaders are looking for signs as well.

Regarding greenhouse gas emissions, the Japanese government, facing a seemingly intractable showdown between business interests (cap GHG emissions at +4% above 1990 levels) and environmentalists (reduce GHG emissions to -25% of 1990 levels) asked the public to help decide. The Japanese public, not surprisingly, chose the middle path option they were offered (-7% from 1990 levels). Let’s remember that under the Kyoto Protocol Japanese GHG emissions rose roughly 6%. Things are not what they seem. Ah, where is the Oracle at Delphi when you need her?

We are at a time where our conventional decision-making capacities are failing. Too many choices, mounting and multiple risks, way too much uncertainty. Business leaders want to move but are looking for direction. Governments wants to act but, they too, are looking for direction. Public opinion is all over the place. 

So, what to do? Let’s begin with another question: What sustains? We need to take a look at what holds us together. What supports us? What do we need? What sustains?

We need to look at the Value Web and begin boldly designing from and for abundance. Big business, small business, venture capital, entrepreneurs, NPO’s & NGO’s, school principals, teachers & professors, doctors & nurses, housewives & househusbands, village councils, state, provincial & prefectural assemblies, mayors, city directors, governors, presidents & prime ministers–all of us need to be doing this together. NOW. 

Otherwise, we will end up like the three middle school girls’ I remember from my English teaching days in Japan. They were members of the softball team and I was watching their team practice. The coach would line a ball to the shortstop and she would deftly field it and sling it over to first in accordance with her teammates shouts. The girl minding third base did the same. When the coach hit the ball deep to left field, the left fielder chased it down and relayed the ball to the shortstop who then, at the behest of her teammates spun and slung the ball home, to the catcher.

Then, there was this pop fly. A little Texas leaguer that either the girl at third, the shortstop or the left fielder could have called and caught. Instead they all tracked the ball on it’s upward arc and, as it descended, they formed a neat triangle into the middle of which dropped the ball. There was no tried and true response for this situation. The three girls looked at each other. Their teammates stood in confused silence. And, in that moment, nothing happened.

Sound familiar? Who wants the ball?

Catch…

Tags: CEO, climate change, government regulation, greenhouse gases, Japan, Kyoto protocol, the Value Web, Wall Street Journal, what sustains

Economy + Ecology

In case you haven’t been there already, I recommend checking out The Inspired Economist.

They do a great job of sourcing stories that have that special eco-centric mix. They matter both ecologically and economically.

Tags: eco-centric, ecology, economy, Inspired economist

Cradle to Cradle Wisdom

Here’s a couple of perspectives from Bill McDonough and Michael Braungart taken from Cradle to Cradle:

If we were to have intentionally designed the industrial revolution here are some of the specs we would have needed to follow:

• put billions of pounds of toxic material into the air, water and soil every year
• produce some materials so dangerous they will require constant vigilance by future generations
• create gigantic amounts of waste
• put valuable materials in holes all over the planet, where they can never be retrieved
• require thousands of complex regulations-not to keep people and natural systems safe, but rather to keep them from being poisoned too quickly
• measure productivity by how few people are working
• create prosperity by digging up or cutting down natural resources and then burying them or burning them
• erode the diversity of species and cultural practices

Now, if we were to do a redesign around eco-efficiency and other current definitions of doing less harm the specs would look like this:

• release fewer pounds of toxic wastes into the air, soil and water every year
• measure prosperity by less activity
• meet the stipulations of thousands of complex regulations to keep people and natural systems from being poisoned too quickly
• produce fewer materials that are so dangerous that they will require future generations to maintain constant vigilance while living in terror
• create smaller amounts of useless waste
• put smaller amounts of valuable materials in holes all over the planet, where they can never be retrieved

A couple of key points here. No one designed the industrial revolution and, really, we aren’t doing a very good job of designing for a sustainable, much less an abundant future. No one intended to flood their communities with toxic compounds, create large whorls of plastic trash in our oceans, collapse the banking system and kick off a worldwide recession or alter the climate of the planet on which we depend for existence.

We, all of us, just drove on oblivious to the signs warning that a pretty precipitous cliff lay dead ahead. Now we are flailing around with a lot of our energy being expended on figuring out how to drive toward (and off) the cliff more slowly. Not good.

It’s hard. Just ask Henry Waxman and Ed Markey, the rest of the House of Representatives and legislators, policy makers and leaders all over the world as they wrestle with climate change legislation and regulations. Let’s face it, most of us, in some way, depend on the current state of things to get by.

Yet, the question I think we should be asking is not “How to we keep what we’ve got?” but “How do we give up what we’ve got in order to get more for all of us in the future?” In aikido (thanks to the late Terry Dobson)  we call this “giving in to get your way”

So, what to do? We’ve got to get everyone involved. Less bad is still bad. Less bad is unsustainable. As we continue to meet the needs of the present we’ve got to come together and design for a future that is not less bad but more good. While meeting the needs of the present we need to collectively imagine, design and implement a future that gives us, our children and grandchildren our best shot at living lives of sustainable abundance. 

This goes beyond ideology, industry and ego. It is at the heart of community and living and working together well. This is a game we all can play. The rules? Design, develop and implement for a sustainable present and abundant future. Do it together. Do it well. Be present, build resilience. Be disciplined. Do it ASAP. Have fun!

Tags: aikido, banking system, Bill McDonough, climate change, climate change legislation, collapse, Cradle to cradle, design, eco-efficiency, Ed Markey, Henry Waxman, Michael Braungart, recession, resilience, Terry Dobson, toxic material, waste

Nike, Creative Commons and Best Buy Building Collaboration

Interesting post at Worldchanging details an approach by these companies to open up their sustainability innovation using Green XChange:

Combining technology and the Creative Commons licensing structure, Green Xchange provides a platform where companies are able to issue licenses to other companies, allowing them to access patented research. The patent owners determine the terms for use, creating a contract that other interested parties accept before accessing the information. Patent holders can protect sensitive information by screening which types of companies may access it, and they can also set the cost for its use. The funds generated would theoretically provide a revenue stream to fund further research.

Like it. This is the kind of thinking and practice that can make sustainability sustainable. Now we need mindsets to follow practice. As they say at Worldchanging:

The main obstacle in persuading companies to share their valuable knowledge is fear…Green Xchange challenges companies to view them as something transferable, and potentially profitable when shared. 

…If Green Xchange succeeds in changing the way we think about transferring intellectual property and benefiting from shared ideas, it could usher us into a new realm of thinking of sustainability (and potentially other fields like medicine) as a truly collaborative endeavor.

Could not agree more. An abundant world awaits.

Collaboration is where we start unlocking our potential to solve the problems we’re facing at a level higher than the thinking that got us into them. Compliance and Conformity just are not sustainable. Cooperation, though good, is not going to be enough either.

Coherence, a step beyond Collaboration, is where it all comes together-we start being the change we want to see in the world. And if we can start to act in Constellations, our unfolding present and our children’s futures may really begin to shine, brilliantly.

Tags: Best Buy, Coherence, collaboration, Compliance, Conformity, Constellation, cooperation, Creative Commons, Green XChange, innovation, intellectual property, Nike, patents, Worldchanging

Sustainability Leadership Abounds

We are pleased to announce the launch of our global sustainability leadership organization: Abound.

 

Commitment      Connection     Opportunity

Who We Are

We are leaders in businesses, non-profit organizations and institutions with a mission for sustainability who want to accelerate the pace of change. We believe it is time to re-imagine, re-design, re-organize and re-align to create a present that carries us through sustainability to a future of abundance.

We are all over the world. Headquartered in Portland, Oregon, we have chapters developing across the US and Canada, Japan and the Asia Pacific region. Our global mission is to:

• Strengthen and enhance sustainable leadership
• Develop powerful and deep connections between leaders
• Create sustainable abundance

What We Do

Abound is a membership supported, driven and defined non-profit organization. We provide:

• Leadership Circles: Peer to peer learning groups  committed to helping members deepen their individual, organizational, community and national leadership capacity.
• Learning Events: Integrated into the Leadership Circle experience, these learning sessions  provide participants with the hands on  expertise and learning they need to take their organizations beyond sustainability to abundance.
• Individual and Organizational Assessment: Every member will receive free initial assessments of their leadership capacities, strengths and styles.  After a year, follow up assessments will be made so each member can account for their growth and development.  Abound will also provide assessments of the member organizations to  determine the level  of sustainability the organization has achieved upon joining and over time.
• Knowledge Net: A repository of individual member, sponsor and supporter capabilities and knowledge which any member can access and harness for support.
• Research & Publishing: Thorough, relevant and leading edge research into sustainable practices and their connection to helping member organizations grow and thrive.
• Projects: Supporting members and gathering member support for community, educational and sustainable development projects.

Stay tuned for more…or check out our the Abound website at: www.aboundglobal.org

Tags: Abound, Canada, Japan, leadership, Leadership Circles, Portland Oregon, sustainability